Return of Insured Deposits (RID) form help function

Table of contents


Filing data and Calculations

All dollar amounts reported must be in thousands except premiums payable and sales tax assessment amounts.


CDIC Contact Persons

Questions relating to the filing requirements may be directed to:

Claire Dumais
Compliance Officer, Insurance
613-947-0256
Email: cdumais@cdic.ca

Emiel van der Velden
Director, Insurance
613-943-2773
Email: evandervelden@cdic.ca

Technical questions may be directed to:

Kevin LaPorte
Business Intelligence and Data Manager
613-995-0313
Email: klaporte@cdic.ca


Reconciliation

The Reconciliation form is used to calculate "Total Deposit Liabilities" as at April 30. Federal members can import or enter manually the April 30 consolidated balance sheet (Schedule SIF M4) data prepared for the Office of the Superintendent of Financial Institutions. Provincial members can enter the data manually from their April 30 balance sheet.


Line 3

Cheques and Other Items in Transit (that are not deposit liabilities)

Include:

  • the balance of transit items;

Line 4

Advances from the Bank of Canada

Include:
  • all advances from the Bank of Canada.

    a. Of which are advances from the Standing Liquidity Facility (SLF)

    Include:

      • Only include advances from the Bank of Canada's Standing Liquidity Facility which provides collateralized overnight loans to direct participants in the Large Value Transfer system (LVTS).

Line 5

Acceptances

Include:

  • acceptances of the institution purchased and resold;
  • acceptances of the institution that have not been purchased.

Exclude:

  • acceptances of the institution that have been purchased and held by the institution.

Line 6

Other Liabilities (excluding accrued interest)

  1. Liabilities of Subsidiaries, Other Than Deposits
    1. Call and Other Short Loans Payable

      Include:

      • call and other short loans payable secured by securities which, when made, were payable on call or within 90 days;
      • sight drafts with securities attached;
      • daylight overdrafts outstanding.
    2. Other

      Include:

      • bonds, debentures and other similar forms of debt instruments;
      • liabilities of subsidiaries not included elsewhere.
  2. Insurance-Related Liabilities

    Include:

    • actuarial liabilities related to insurance products of subsidiary companies.
    • actuarial liabilities related to annuity products of subsidiary companies.
    • deferred gains or losses on disposal of portfolio investments (also referred to as adjustment in respect of unamortized gains or losses on investments) if the net balance is a credit.
    • other insurance-related liabilities not reported elsewhere, including provisions for policyholder dividends and provisions for Experience Rating Refunds.
  3. Mortgages and Loans Payable

    Include:

    • associated liabilities resulting from failure to achieve derecognition of financial assets.
  4. Income Taxes
    1. Current

      Include:

      • estimated accrual to date of income taxes payable for the current year.
    2. Deferred

      Include:

      • future taxes if balance is credit.
  5. Obligations Related to Borrowed Securities

    Include:

    • any liabilities related to borrowed securities (securities sold short).
  6. Obligations Related to Assets Sold Under Repurchase Agreements

    Include:

    • liabilities incurred under sale and repurchase agreements;
    • all obligations related to assets sold under repurchase agreements with all counter parties.
      1. Of which obligations are to the Bank of Canada or other organizations of the federal government.

        Include:

        • Repurchase agreement obligations with a counterparty that is a Canadian federal government organization including: all branches of the federal government, the Bank of Canada, CMHC, CDIC and federal enterprises in the Government Business Enterprise listing (GBE). Obligations only refer to counterparty obligations not obligations related to issuing underlying assets.

        1. Of which are overnight and term repos with the Bank of Canada
        2. Of which are repos with the Receiver General
        3. Of which are repos with CHT on behalf of a third party
        4. Of which are other repo transactions with organizations of the federal government

      2. Of which are repos with Federal and Provincial public pension plans (CPP and QPP)

        Only include Canada Pension Plan (COO) managed by Canada Pension Plan Investment Board and Quebec Pension Plan (QPP) managed by Caisse de dépôt et placement du Québec (CDPQ). Do not include pension plans of public sector employees.
  7. Deferred Income

    Include:

    • deferred fees, commission and other revenues;
    • deferred servicing fee income on mortgage-backed securities and other securitized assets;
    • unearned safety deposit box rentals and safekeeping charges;
    • other unearned income, except pre-computed interest on loans.
  8. Derivative Related Amounts

    Include:

    • amounts relating to derivative instruments, including unrealized losses (gains are to be offset against losses only as permitted by IFRS),red unrealised gains relating to reserves for credit and market risks and administration costs etc., and premiums received.
  9. Other
    Include:
    • foreign note circulation outstanding;
    • dividends accrued and payable and estimated accrual-to-date of the dividend for the current quarter;
    • contributions of institution and staff payable to Unemployment Insurance Fund;
    • unamortized premiums on subordinated debt outstanding;
    • present value of the defined benefit obligation;
    • income taxes withheld from staff salaries, directors' fees, dividends etc.;
    • estimated accrual-to-date of contributions, current and arrears, payable to the pension fund and other termination benefits for the current year;
    • interim net profit or loss of financial period if it has not yet been debited or credited to retained earnings;
    • gold and silver certificates;
    • capital leases;
    • allowance for impairment applicable to off-balance sheet items;
    • accrued expenses and salaries and accounts payable;
    • liability for assets sold with recourse;
    • financial instruments that relate to amounts reported as Tier 1 Capital in the BCAR but accounted for as liabilities. Include only preferred shares and amounts related to innovative tier 1 structures grandfathered under OSFI July 2003 and/or February 2004 Advisories.
  10. Accrued interest (other than on deposits)

    Include:

    • accrued interest on subordinated debt;
    • accrued interest on other liabilities as appropriate.

Line 7

Subordinated Debt

Include:

  • debentures;
  • subordinated notes.

Line 8

Shareholders’ Equity

  1. Preferred Shares

    Include:

    • preferred shares issued by the institution.
  2. Common Shares

    Include:

    • common shares issued by the institution.
  3. Contributed Surplus

    Include:

    • premium on issues of shares less any payments of premium on redemption;
    • capital contributions by shareholders without the issuance of shares.
  4. Retained Earnings

    Include:

    • interim profit (loss) not less frequently than at the end of each financial quarter.
  5. Non-Controlling interests

    Include:

    • non-controlling interests arising from the consolidation of subsidiaries which are not 100% owned.
  6. Accumulated Other Comprehensive Income (Loss)

    Include:

    • Report Accumulated Other Comprehensive Income (Loss) as required.
    • For quarterly fiscal reporting, this amount ties to the total reported in Section IV "Comprehensive Income", Schedule 2 "Accumulated Other Comprehensive Income (Loss), Net of Income Taxes" in the P3 "Consolidated Statement of Income, Retained Earnings and AOCI ".

Total Deposit Liabilities (including subsidiaries)

Total includes all deposit liabilities, including subsidiary deposit liabilities.


Deposit Liabilities of Subsidiaries

Include:

  • deposit liabilities of CDIC member subsidiaries;
  • deposit liabilities of non-CDIC member subsidiaries.

Total Deposit Liabilities Per Financial Statements

Includes total deposit liabilities less accrued interest and subsidiary deposit liabilities.


Accrued Interest on Index-linked Deposits

Index-linked Deposits - Interest Accrued and/or Payable

A number of CDIC member institutions have introduced deposit products that pay returns to depositors fixed in retrospect by reference to stock market indexes.

The index-linked term deposit products which have been referred to CDIC to date share, in one form or another, a common characteristic. Subject to the application of any minimum return promised by the member institution or any limitation on the maximum return agreed to by the depositor, the return on such a deposit is to be computed at the stated maturity date with reference to the performance of a stock market index during a period preceding the maturity date - that is, retrospectively.

CDIC has approved a method of calculation to be used to determine the positive yield to be accrued on index-linked deposit products as at April 30th in each year for premium and reporting purposes.

To derive the amount of return component to be attributed as accrued to such a deposit with a retrospective rate calculation as at the April 30th reporting date for CDIC, a member institution is required to substitute April 30th in each year as the day for the return to be computed. The member should then calculate the yield on the principal balance of the deposit to that April 30th at the rate so determined and include it in reporting the total deposit (subject to the approved maximum limit). In reviewing these products, CDIC has determined that it does not matter whether a particular yield formula brings in numbers derived from the referenced index monthly, daily, semi-annually or otherwise. The calculation method, in effect, collapses the term to maturity of the deposit back to the reporting date.

In the case of a three-year term deposit with a minimum rate plus an index-linked rate, at the stated maturity date fixed by reference to the average month-end levels of a stock market index between the date of deposit and maturity, at April 30th in each year while the deposit is outstanding, the member institution would substitute April 30th for the maturity date, perform the averaging calculation using the month-end levels of the index over the period between the date of deposit and that April 30th, and report to CDIC the accrued yield to the April 30th reporting date using the resulting rate of return. Where the contract promises the depositor a minimum return in any event, that minimum should be used to calculate the yield to April 30th in any year where, in applying the formula with April 30th substituted for the stated maturity date as just described, the result is less than the minimum. Conversely, if the result of the formula with the April 30th substituted produces a yield in excess of the limit in the contract, the maximum would be used to compute the interim yield to April 30th.

CDIC will not retroactively adjust the annual premium payable by a member institution based on its April 30th calculation in any year as the result of subsequent differences between a yield calculated for reporting purposes using this approved method and the actual yield subsequently established as payable to a depositor. That is to say, if a return to April 30th as fixed in retrospect on a day subsequent to April 30th in accordance with the deposit contract proves to be higher or lower than the yield calculated using this approved method, CDIC will neither rebate the premium paid using the higher reported yield nor request the member to pay a supplementary premium using a higher actual return.


Total Deposit Liabilities

Total deposit liabilities are automatically imported to Line 1 of the Return of Insured Deposits form.


Return of Insured Deposits

This form calculates the premium payable to CDIC based on the total of CDIC insurable deposits.


Line 1

Represents the amount carried forward from the Reconciliation form and includes insurable deposits as well as deposits that do not qualify for deposit insurance.

Insurable deposits include but are not limited to:

  • demand, notice, time and term deposits;
  • guaranteed investment certificates (GICs);
  • deposits in the form of debentures (other than a debenture issued by a bank)
  • money orders for which the institution is primarily liable;
  • drafts, official cheques and certified cheques;
  • prepaid letters of credit;
  • traveler’s cheques for which the institution is primarily liable;
  • credit balances of deposit instruments in transit;
  • mortgage tax accounts;
  • deposits held in tax-free savings accounts and other registered plans;
  • annuity contract deposits;
  • interest accrued and/or payable on deposits;
  • cash balances in individual capital accounts, revenue accounts, and other accounts of each estate, trust, management, safe custody, agency and similar other accounts if held as a deposit; and
  • RRSP and RRIF un-invested cash balances if held as deposits.

Line 2

Include deposit liabilities that are not insurable under the CDIC Act. These include but are not limited to:

  • deposits payable in a foreign currency;
  • deposits payable outside Canada;
  • deposits payable to the Government of Canada;
  • deposits with a term of more than five years except five year deposits that mature on a non-business day and have been extended for that reason to the next business day, and;
  • deposits payable to bearer.

Line 3

This line represents the sub-total of deposits that qualify for deposit insurance.


Line 4

Deduct amounts in excess of the approved maximum limit per depositor.

The maximum basic protection for eligible deposits is $100,000 (principal and interest combined) per depositor.

CDIC provides separate protection up to the approved maximum limit for each of the following: deposits in one name, joint deposits, deposits held in trust, deposits held in registered retirement savings plans (RRSPs), registered retirement income funds (RRIFs), deposits held in a tax-free savings account (TFSAs) and deposits held for paying taxes on mortgaged properties (monies received or held on behalf of a mortgagor in respect of realty taxes on mortgaged property).

The following explains in more detail the rules for determining amounts in excess of the approved maximum limit per depositor:

A. Deposits held in one name

The maximum basic protection applies. All deposits held in the same depositor's name are aggregated.

B. Joint Deposits

Joint deposits are treated as separate from individual deposits of the joint depositors and from any joint deposits a joint depositor may have with different depositors, provided that the records of the member institution:

  1. state that the deposits are held jointly; and
  2. identify the name and address of each joint owner.

The maximum protection applies collectively to the number of joint owners. All joint deposits of the same joint depositors are aggregated.

C. Trust Deposits

  1. Trust deposits are covered separately up to the maximum limit from any deposits owned individually by the trustee or by the beneficiary(ies), provided the trustee has disclosed for inclusion in the records of the member institution:

    1. a statement that the deposit is held in trust;
    2. the name and address of the trustee(s); and
    3. the name and address of the beneficiary(ies).

  2. Where there are two or more beneficiaries of a trust deposit, the records of the member institution must disclose the information in a), b) and c) above, together with the interest of each beneficiary in the deposit. Provided this information is disclosed on the member’s records, the interest of each beneficiary is treated as if it was a separate deposit for the purpose of deposit insurance. Each beneficiary's share is insured up to the maximum protection.

Any amount of principal and interest for a beneficiary in excess of the approved maximum limit is not insured.

D. Registered Retirement Savings Plans (RRSP)

  1. Insurable deposits, including uninvested cash balances held in RRSPs are treated separately from any non-RRSP deposit accounts held for the same individual. Insurable RRSP deposits held by the same individual are aggregated.
  2. Where a member institution acts as trustee or administrator for self-directed RRSP deposits that are held at a different member institution, those deposits are insured through that member institution.

All eligible deposits having both the same trustee and the same beneficiary(ies) are aggregated.

E. Registered Retirement Income Funds (RRIF)

  • Insurable deposits held in RRIF’s are subject to the same rules as outlined in Registered Retirement Savings Plans, D (1) and (2).

F. Tax-Free Savings Accounts (TFSAs)

  • Eligible accounts or financial products held in TFSA. All TFSA eligible deposits held under the same depositor's name are aggregated.

G. Realty Taxes on Mortgaged Properties

  • An unpaid balance of monies received or held by an institution from or on behalf of a mortgagor in respect of realty taxes on mortgaged properties is a deposit and is separately insured from any other deposit of that depositor with the institution.

Line 5

Represents the amount of insured deposits premiums are paid on.


Line 6 and 7

Under the CDIC Differential Premiums By-law each member institution is classified into one of four premium categories. Premium categories and the corresponding percentage of the maximum premium rate are set out as follows:

Premium Category Premium Percentage
        1         19.5
        2         39.0
        3         78.0
        4       100.00

CDIC will advise the member institution of its premium category and the premium percentage prior to July 15. On line 6 and 7, indicate the premium category and percentage assigned.


Line 8

The form will automatically calculate the premium payable according to the following formula:

The greater of:

  1. $5,000 and
  2. A* X Total Insured Deposits (Line 5) X corresponding percentage (Line 7)

* where A is: one third of one per cent, or such smaller proportion of one per cent as may be fixed by the Governor in Council under subparagraph 23(1)(b)(ii) of the Act

If your institution is a provincially incorporated institution accepting deposits made and payable in Quebec, premiums are automatically calculated according to the following formula:

The greater of:

  1. $5,000 and
  2. A* X Total Insured Deposits made and payable outside of Quebec (Line 5 (C)) X corresponding percentage (Line 7)

* where A is: one third of one per cent, or such smaller proportion of one per cent as may be fixed by the Governor in Council under subparagraph 23(1)(b)(ii) of the Act


Insurable Deposits by Insurance Category

1. Basic Protection

  • The maximum basic protection for insured deposits is up to the approved maximum limit (principal and interest combined). All deposit accounts of the same person are aggregated.

2. Joint Deposits

  • Joint deposits are treated as separate from individual deposits of the joint depositors and from any joint deposits a joint depositor may have with different depositors. All joint deposit accounts of the same joint depositors are aggregated (collectively, not per individual owner) up to the approved maximum limit (principal and interest combined).

3. Trust Deposits

  1. A single beneficiary trust deposit is insured separately up to the approved maximum limit from any deposits owned individually by the trustee or by the beneficiary, providing the records of the member institution:

    1. state that the deposit is held in trust;
    2. identify the name and address of the trustee(s); and
    3. identify the name and address of the beneficiary(ies).

    All eligible deposit accounts having both the same trustee and the same beneficiary are aggregated.

  2. Where there are two or more beneficiaries of a trust deposit the records of the member institution must disclose the information in a), b) and c) above, together with the interest of each beneficiary in the deposit. Provided this information is disclosed on the member’s records, the interest of each beneficiary is treated as if it was a separate deposit for the purpose of deposit insurance. Any amount of principal and interest for a beneficiary in excess of the approved maximum limit is not insured.

4. RRSPs

  1. Insurable deposits, including uninvested cash balances held in RRSPs are treated separately from any non-RRSP deposit accounts held for the same individual. Insurable RRSP deposits held by the same individual are aggregated.
  2. Where a member institution acts as trustee or administrator for self-directed RRSP deposits that are held at a different member institution, those deposits are insured through that member institution.

5. RRIFs

  • Insurable deposits held in RRIF’s are subject to the same rules as outlined in Registered Retirement Savings Plans, (1) and (2).

6. TFSAs

  • Insurable deposits held in eligible accounts and financial products that are held in TFSAs.

7. Realty Taxes on Mortgaged Properties

  • An unpaid balance of monies received or held by an institution from or on behalf of a mortgagor in respect of realty taxes on mortgaged properties is a deposit and is separately insured from any other deposit of that depositor with the institution.

Provincial Sales Tax Assessment

Member institutions conducting business in the Provinces of Ontario and Quebec, or both, are required to remit to CDIC, provincial sales tax on the portion of its deposit insurance premiums relating to deposits made and payable in those provinces.

For more clarity, members should look where the money is held, and if it is held in branches (or places of business) located in Quebec and / or Ontario, PST becomes payable. The residency of depositors is irrelevant.

In the case of online banking (the same rationale applies to brokered deposits), if the head office location of the member is in one of those two provinces, PST applies. If a member is paying the minimum annual premium (i.e. $5,000, or a lesser amount prorated to the number of days the deposits are insured during the RID year), PST is payable.

The Provincial Sales Tax Assessment is to be completed and forwarded to CDIC together with the Return of Insured Deposits.

 


Payment of Premium/Sales Tax

Payment of one-half of the premium and one-half of applicable sales tax must be received at CDIC’s head office in Ottawa on or before July 15 of the current year. The second half of the premium and applicable sales tax installment must be received on or before December 15 of the current year.

Payment may be made by electronic funds transfer (EFT), wire transfer or cheque (details for wire transfer will be communicated prior to July 15 directly to members).

By Cheque:

Canada Deposit Insurance Corporation
50 O’Connor Street
17th Floor
OTTAWA ON   K1P 6L2

Wire Transfer:

Confirm the wire transfer via email to CDICFinance@cdic.ca or by fax to the attention of Accounts Receivable at 613-996-1468.

CDIC may charge interest on the unpaid amount of any premium not paid on or before the due date. Interest is levied at the rate prescribed pursuant to subsection 161(1) of the Income Tax Act plus two percent.


Certifications(2)

The Chief Financial Officer (or other authorized officer) is required to confirm that:

  • the member institution MEETS or DOES NOT MEET the requirements of the CDIC Data and System Requirements By-law (DSRB) as at April 30 of the filing year; OR
  • the member institution meets the definition of NEW MEMBER (a new member in this context is defined as being a CDIC member institution for less than 18 months - a new member must comply with the DSRB not later than 18 months after the day on which it becomes a member); AND
  • the information contained in the Return of Insured Deposits is correct;
  • the relevant management of the member institution is familiar with the CDIC Deposit Insurance Information By-law; AND
  • the attached deposit list is up-to-date and sets out each type of deposit instrument eligible for deposit insurance for which the member has received or is holding money that has been included in this Return.

Attachments

Please submit your *Deposit Product List along with the RID Reporting Form:

*Note: If you are not attaching your *Deposit Product List with your return, please ensure that it reaches CDIC’s head office on or before July 15 of the current year.